Assume that you have been hired as a consultant by General Dynamics Corporation, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. The stock is currently selling for $15.25 per share, and its corporate $1,000 par value, 20-year, 7.25% bonds with annual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's marginal tax rate is 40%. What is the best estimate of the after-tax cost of debt? Based on the CAPM. what is the firm's cost of equity? What is the best estimate of the firm's after tax weighted average cost of capital (ATWACC)? If during the fist year of operations the company's return on assets (ROA) is 10% was value created or destroyed for the given year? Explain your